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Technology Stocks : PC Sector Round Table
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To: Sam who wrote (1480)3/3/1999 12:01:00 PM
From: Robert Douglas  Read Replies (2) of 2025
 
Sam,

Thanks for the article. I am mystified when I hear people talk about the huge profits that will come from Internet retailing. If anything etailing will produce even slimmer margins than its more traditional counterparts. More competition equals tighter margins. I don't even believe that Dell will keep anywhere near its present margins (8.2% last Q). I will go so far as to predict that Dell's quarterly margin will be the high point in the history of the company. What will Amazon earn 5 to 10 years down the road? My guess is around 1 1/2 to 2% on sales.

-Robert
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